Decomposing the Determinants of Fathers’ Parental Leave Use: Evidence from migration between Finland and Sweden

The use of parental leave by fathers varies notably between
countries. However, the underlying reasons for cross-country differences have
not been explicitly studied. We use migration between Finland and Sweden as an
instrument to decompose the role of policy design and social norms in the
differences in take-up rates between these two countries. First, by looking at
fathers from the same country of origin in various policy contexts, we infer
the role of policy. Second, by examining fathers who migrated at different ages
and fathers with spouses of different origins, we deduce the role of norms. We
find that the large cross-country differences in fathers’ use of parental leave
between Finland and Sweden stem mainly from differences in policy design. Norms
seem to play a smaller, but still significant, role.